House Hack #3 - Debt to Income Issue

[Chris Mylan]

Hi BP,

After two successful, cash flowing house hacks in the DC area, my DTI is pushing 40 percent. I will not be approved for a third loan without a little ingenuity. My goal is to put down less than 20% on a third, owner occupied house. Does anyone have any ideas or solutions to this problem?

Maybe a co-borrower that does not live in the house (i.e. can I use my parent's income if they agree to co-sign the loan). I've heard of people using HELOCs, private or hard money to put down the full 20-25%, but I would like to use those as last options. 

I could also sell one of the houses, but I would like to keep them both for long term buy and holds, if possible. 

Appreciate the feedback and any potential solutions.

Thanks,
Chris M

[Russell Brazil]

@Chris Mylan you could go FHA on the next one, allowing a much higher DTI. Not the best loan by any means, but the higher DTI can be useful in situations like this one.